Home Affairs Minister Urges Regional Governments to Secure Supplies to Control Inflation

Home Affairs Minister Muhammad Tito Karnavian has requested regional governments to strengthen the supply and smooth distribution of goods to keep inflation under control in the second half of 2026. He specifically urged regions still recording high inflation rates to take immediate steps according to their local conditions, primarily by bolstering the supply and distribution of essential commodities. “I have given directives to all regions. My target is those with high rates, generally in eastern Indonesia and also in Aceh. The steps are to increase supply,” Tito said in a statement. The directive was delivered after he attended a limited coordination meeting evaluating inflation control achievements in the first half of 2026 and planning for the second half at the Coordinating Ministry for Economic Affairs in Jakarta. The move is considered crucial as several components, particularly the transport sector and some food commodities, continue to exert pressure on inflation. Tito confirmed that the national inflation condition remains within a manageable range, with the annual rate recorded at 3.34 percent, still below the upper target limit of 3.5 percent. However, the government remains vigilant regarding month-to-month increases influenced by several factors. The main contributors to the rise in inflation came from the transport sector, especially airfares, following increased public mobility during the school holiday period. Additionally, price increases in several food commodities, such as garlic, cooking oil, and rice, also added inflationary pressure. Beyond strengthening supply, Tito also asked regional governments to anticipate distribution obstacles caused by weather conditions, particularly in archipelagic regions that frequently face high waves. He suggested that using larger-capacity vessels could be a solution to ensure smooth distribution, maintain supply, and stabilise prices for the public. The minister stressed that controlling inflation requires strong synergy between the central and regional governments. Coordination through the Central Inflation Control Team and Regional Inflation Control Teams will continue to be strengthened by involving relevant ministries and agencies, including Statistics Indonesia and the State Logistics Agency.